Migrants facing five-year big cities ban

Explaining how the proposal has been planned, he said that new immigrants to Australia would be mandatorily required to live in regional areas for at least "a few years" and this condition would be put forward in the visa application procedure.

"The fact is that 87 percent of all skilled migrants are going to Sydney and Melbourne, and almost all of the humanitarian intake", he said in his speech.

Marion Terrill, an expert on cities and transport from the Melbourne-based Grattan Institute think tank, said governments need to improve infrastructure in major cities rather than curb population growth.

"There are regional areas and smaller states that want to grow more quickly, and it takes pressure off the bigger populations".

In a major speech later today, Cities and Population Minister, Alan Tudge, will reveal congestion cost $25 billion in 2017-18, and will rise to $40 billion a year by 2030.

An official in Tudge's office, who declined to be named, said migrants could be restricted from settling in the biggest cities for up to five years.

"The key issue here is the distribution of the growth rather than the growth number", Tudge said on ABC Breakfast.

The figure accounts for more than half the total flow of people into Australia, she added. "The growth rate for our nation (and particularly our big cities) was well above projections", Tudge said.

In case you are planning to move to Australia and have been dreaming of living in Sydney and strolling along the Bondi beach or visiting the numerous cafes and markets in Melbourne, this government proposal may just rain on your parade.

Firstly, the government will increase spending in infrastructure for city road and rail networks. "There are a lot reasons for that, but one of those reasons is that the population has been growing, on average, 1.5 per cent a year", Reserve Bank of Australia Governor Philip Lowe said.

The second part of the government's plan focuses on specific areas of local congestion that have been causing the greatest delays for commuters.

The third part of the plan focuses on directing skilled migrants to smaller states and regions.

Australia's so-called points system for assessing potential migrants sees skilled workers ranked by their need, and they must also pass health and character tests.

Australia is one of the most sparsely populated countries in the world, but has long had a high proportion of its population - now 25 million people - living in cities.

Minister for Human Services Alan Tudge.

He also said there will be more initiatives to support the growth of regional areas in Australia.